Thursday, October 23, 2014
Savings Of $500,000 Expected From Refinancing Of Debt
Overall, local residents should see half a million dollars in savings thanks to lower interest rates quoted during the process of refinancing some of the City of Lawrenceburg’s current outstanding debt.
Members of the Lawrenceburg Board of Mayor and Council approved two resolutions Thursday morning to refinance a total of $8,850,000 in debt.
The sale of General Obligation Refunding Bonds in the amount of $2,750,000 was approved which will lower the interest rate from 3.85% to 1.46%. That translates into savings to the city of approximately $100,000.
In addition, leaders voted to approve the sale of Electric System Revenue and Tax Refunding Bonds in the amount of $6,100,000 for Lawrenceburg Utility Systems. The move will decrease the interest rate associated with that debt from 4.12% to 2.75% and create a savings of around $400,000.
The actions were taken to refinance debt associated with bond issuances obtained in June and July of 2005.
